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. From the following information, calculate EOQ :
Annual consumption of input : 48000 units
Purchase price of input unit : Rs. 25
Annual carrying cost : 12 %
Ordering cost per order : Rs. 180?
Annual consumption of input : 48000 units
Purchase price of input unit : Rs. 25
Annual carrying cost : 12 %
Ordering cost per order : Rs. 180?
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. From the following information, calculate EOQ : Annual consumption o...
- Annual consumption: 48000 units
- Purchase price per unit: Rs. 25
- Annual carrying cost: 12%
- Ordering cost per order: Rs. 180
Calculating EOQ:
Calculate the annual demand:
Annual demand = Annual consumption = 48000 units
Calculate the ordering cost per year:
Number of orders per year = Annual demand / EOQ
Ordering cost per year = Number of orders per year * Ordering cost per order
Calculate the carrying cost per year:
Carrying cost per year = (EOQ / 2) * Purchase price per unit * Annual carrying cost
Total cost per year:
Total cost = Ordering cost per year + Carrying cost per year
EOQ Calculation:
1. Calculate EOQ using the formula:
EOQ = sqrt((2 * Annual demand * Ordering cost per order) / Carrying cost per unit)
2. Substitute the given values into the formula:
EOQ = sqrt((2 * 48000 * 180) / (25 * 0.12))
3. Calculate EOQ:
EOQ = sqrt(1728000 / 3)
EOQ = sqrt(576000)
EOQ = 758.58 units
Therefore, the Economic Order Quantity (EOQ) for this scenario is 758.58 units. This quantity represents the optimal order quantity that minimizes the total inventory costs considering both ordering and carrying costs.
- Purchase price per unit: Rs. 25
- Annual carrying cost: 12%
- Ordering cost per order: Rs. 180
Calculating EOQ:
Calculate the annual demand:
Annual demand = Annual consumption = 48000 units
Calculate the ordering cost per year:
Number of orders per year = Annual demand / EOQ
Ordering cost per year = Number of orders per year * Ordering cost per order
Calculate the carrying cost per year:
Carrying cost per year = (EOQ / 2) * Purchase price per unit * Annual carrying cost
Total cost per year:
Total cost = Ordering cost per year + Carrying cost per year
EOQ Calculation:
1. Calculate EOQ using the formula:
EOQ = sqrt((2 * Annual demand * Ordering cost per order) / Carrying cost per unit)
2. Substitute the given values into the formula:
EOQ = sqrt((2 * 48000 * 180) / (25 * 0.12))
3. Calculate EOQ:
EOQ = sqrt(1728000 / 3)
EOQ = sqrt(576000)
EOQ = 758.58 units
Therefore, the Economic Order Quantity (EOQ) for this scenario is 758.58 units. This quantity represents the optimal order quantity that minimizes the total inventory costs considering both ordering and carrying costs.
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. From the following information, calculate EOQ : Annual consumption of input : 48000 units Purchase price of input unit : Rs. 25 Annual carrying cost : 12 % Ordering cost per order : Rs. 180?
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. From the following information, calculate EOQ : Annual consumption of input : 48000 units Purchase price of input unit : Rs. 25 Annual carrying cost : 12 % Ordering cost per order : Rs. 180? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about . From the following information, calculate EOQ : Annual consumption of input : 48000 units Purchase price of input unit : Rs. 25 Annual carrying cost : 12 % Ordering cost per order : Rs. 180? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for . From the following information, calculate EOQ : Annual consumption of input : 48000 units Purchase price of input unit : Rs. 25 Annual carrying cost : 12 % Ordering cost per order : Rs. 180?.
. From the following information, calculate EOQ : Annual consumption of input : 48000 units Purchase price of input unit : Rs. 25 Annual carrying cost : 12 % Ordering cost per order : Rs. 180? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about . From the following information, calculate EOQ : Annual consumption of input : 48000 units Purchase price of input unit : Rs. 25 Annual carrying cost : 12 % Ordering cost per order : Rs. 180? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for . From the following information, calculate EOQ : Annual consumption of input : 48000 units Purchase price of input unit : Rs. 25 Annual carrying cost : 12 % Ordering cost per order : Rs. 180?.
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